Virtuous Data Cycles: When it comes to data collection, the insurance industry is following Progressive's lead
Mo Data stashed this in Big Data in Insurance
Small telematics devices like Snapshot compile and analyze data on driver behavior. The programs are voluntary, The Journal notes, and better drivers qualify for discounts. “In general, insurers say those who fall short aren't charged higher rates, but instead pay no more than what they already are paying, based on conventional pricing methods,” the newspaper says.
Big Data is not simply about collecting data to increase operational efficiencies or to sell on to unscrupulous marketers. It actually has the potential to change peoples behavior to make them safer, more aware or lower cost to maintain customers. Win-win.
One of the big data principles that we follow at Mo-Data.com is how to create applications for end-users of the core product (in this case the car and the insurance policy) that will improve their experience or life and in turn will generate even more data. Virtuous data cycles.